2-009.02A1a Disregards for Self-Employment

Operating expenses related to producing the goods or services and without which the goods or services could not be produced are deducted from gross income. Operating expenses may include:

1. Cost of goods sold;
2. Advertising;
3. Bad debts from sales or services;
4. Bank service charges;
5. Car and truck expenses;
6. Commission;
7. Employee benefit programs;
8. Freight/shipping costs;
9. Insurance;
10. Interest on business indebtedness;
11. Laundry and cleaning;
12. Legal and professional services;
13. Office supplies and postage;
14. Rent on business property;
15. Repairs and maintenance;
16. Supplies;
17. Utilities and telephone;
18. Wages; and
19. Transportation other than to and from work and child care.

Mileage is allowed at the state employee mileage rate.

(12/27/97)

2-009.02A1a(1) Operating Expenses - Farm Income

2-009.02A1a(2) Operating Expenses Not Allowed

2-009.02A1a(3) Offset of Earnings